CA Senator Proposes Worker Health Care Plan

December 14, 2006 (PLANSPONSOR.com) - California
Senate President pro Tem Don Perata on Tuesday unveiled a
health care proposal that would give all of California's
working adults and their families access to affordable health
insurance.

Under the proposal, employers would have a choice
of either providing health insurance to employees or
contributing to a state purchasing pool called the
Connector, according to a statement on Perata’s Web
site. The Connector would negotiate the best rates
and offer employees a choice of plans that provide
comprehensive health coverage including medical,
hospital, and prescription drug benefits.

All California employers would be required to spend
a certain percentage of social security wages for
employee health insurance costs, the statement
said. Employers who choose not to provide health
insurance to employees could elect to pay an equivalent
amount to the trust fund used by the Connector.
Employee contributions equal to a certain percentage of
pay would be collected by the employer.

The proposal also would require all working
Californians and their families to have health care
coverage at a minimum benefit level to be determined and
would be required to present proof of health care
coverage or lose tax credits for themselves and their
dependants.

While working Californians would be guaranteed
health care coverage under Perata’s proposal, other
uninsured residents would continue to be covered by the
state’s Healthy Families program and Medi-Cal. The
proposal would expand the Healthy Families program and
Medi-Cal to cover all eligible children and their parents
up to 300% of the federal poverty line and federal funds
for the program would be matched by employer and employee
contributions through the Connector.

Since Massachusetts passed a universal health care
mandate in April, a number of states have either passed
or proposed similar legislation, including Tennessee,
Michigan, Minnesota, Vermont, and Oregon (See
Oregon Latest to Move Toward Universal
Health Care).